State-run sector accounts for 80 percent of Iran’s GDP

Business Materials 13 September 2014 16:45 (UTC +04:00)

Baku, Azerbaijan, Sept.13

By Fatih Karimov - Trend: The state-run sector accounts for 80 percent of Iran's GDP.

Mohammad-Baqer Nobakht, Iran's vice president for planning and strategic supervision, said transferring all the affairs to the private sector is an unsuccessful experience. However, the state-controlled economy will not be successful alone, Iran's IRIB reported on September 13.

The World Bank has put Iran's GDP at $369 billion in 2013, compared to $528 billion in 2011.

Iran's economic growth rate will hit 1.5 percent in the current year, the International Monetary Fund said.

Masood Ahmed, the director of the IMF's Middle East and Central Asia Department, said in Tehran that the country's economic growth rate will increase to 1.5 percent after two years of contraction, Iran's IRNA news agency reported on August 5.

The inflation rate in Iran has decreased and the foreign currency exchange rates have been stabilized as a result of effective policies taken by President Hassan Rouhani's administration, he said.

The government's policies are aimed at improving the monetary and fiscal policies and enhance efficiency and productivity in different sectors, he added.

The IMF said in April that Iran's economy has contracted by 1.7 percent in 2013. However, the economy will come out of recession in 2014, the report added.

Business Monitor said in its April report that the Iranian economy will return to growth in 2014, as the improvement in relations with the West and better macroeconomic management will lead to an improved outlook for exports and increased business and consumer confidence.

Recent improvements in relations with the West bode well for the country's economy, which is forecast to expand by 2.9 percent in 2015, according to the report.